Southern Pacific Resource Corp STPJF

Well Performance

[Risky_Business]

I was golfing with an engineer from AOS last week.  Started talking about STP.  He says STP got too cute with the drilling of the well pairs...ie....they tried to get too close to the bottom of the pay zone and imposed extra technical risk on the project.

Anyone else hear this as well?

RB

[nikehercules]

Yes, that is the case. My contact went on to blame Lutes for the mess. Chad Harris may have been fired back in November 2013 but Lutes bears ultimate responsiblity for going with such a bold design on a new and unknown reservior. Good news is they probably won't do it again, I hope......

[Eyeinvestor]

Yes I have heard this several times about Pad 1. To a lesser extent on Pad 2. The company has admitted it made a mistake with Pad 1. Pad 1 was an unmitigated disaster. The separation of injection and production wells was too great, and the varying contours of the production well trying to catch every last puddle of bitumen simply didn't work. ICD on one of the wells has started to help, but

[scatterhead]

Good 'EYE'

[PeakOilBoy]

When exactly did the company admit pad 1 was finally a mistake?  Details?  Eye wonder if you talk to people eye don't?   Eye seem to think you are confident about this.  

[nikehercules]

PeakOilBoy - Head over to slide 70 on the most recent AER presentation. Scheme Performance Key Learnings -Implement tighter lateral inter well pair spacing on future drills. -Reduce Producer and Injector wellbore spacing. -Keep consistent separation between Producer and Injector wellbores. -Potentially implement HPSS with a balanced differential pressure early in a wells life. -Install ICD’s

[Eyeinvestor]

Eye don't want to overstate this, so let me rephrase and say: Implicit in some of their comments are an admission that they made a mistake on the design of Pad 1. For example, they say things like, if we were doing it again, we would do it differently. Meye view is that Pad 2 is a better guide to what McKay is capable of in the future with new wells drilled with pre-installed ICDs. Even Pad